grits which are sold to local C. Part 1: A division of Granbys Gournet Vites, Io

Question

grits which are sold to local C. Part 1: A division of Granbys Gournet Vites, IoC-produces homemade restaurants in one-pound bags. Following are the estimated costs for producing a 100 pounds of grits which takes only one day.Calculate the price perpound of Ritsif Granny smarkup is 30%. Fixed costs Variable costs --$10 perday 200 per day !0.80perpound Deprecation-kitchen equipment Uncookedgrits Special ingredients Packaging for the grits Hourly cook wages ents 0.40per pound Granny's salary 120perda. 1.00 per pound Kitchen utilities 1.60 HW 7-MANAGEMENT ACCOUNTING INTRO CH 18) Part 2: A division of Grapny's Gournet Vitties. InC- produces possum stew which is sold to local restaurants in one-gallon jugs. Following are the estimated costs for producing a 50 jugs of stew which takes only one day Calculatethepriceper Rallonofpossun, stew if Granny's markup is 20%. Fixed costs Variable costs Possum meat Commissions Packaging for the grits Hourly cook wages 80 per day L-120per day, 60 per d eciation kitchen equipment $2.00 per sallon 0.50 per gallon Granny's salary |De 0.70 per sallon Kitchen utilities

Explanation / Answer

part 1 Variable cost Per pound for 100 Pounds Uncooked Grits             0.80                        80.00 Special Ingredients             0.40                        40.00 Packaging             1.00                     100.00 Hourly cook wages             1.60                     160.00 Fixed Cost Depreciation                     100.00 Granny Salary                     200.00 Kitchen Utilities                     120.00 Total Cost                     800.00 Mark up 30%                     240.00 Total Sale revenue                  1,040.00 Total Pounds                     100.00 sellling price =1040/100 sellling price                        10.40 Part 2 Variable cost Per pound For 50 jugs Possum Meat             2.00                     100.00 Commission             0.50                        25.00 Packaging             0.70                        35.00 Hourly cook wages             0.80                        40.00 Fixed Cost Depreciation                        80.00 Granny Salary                     120.00 Kitchen Utilities                        60.00 Advertising                        40.00 Total Cost                     500.00 Mark up 20%                     100.00 Total Sale revenue                     600.00 Total Jugs                        50.00 sellling price =600/50 sellling price                        12.00

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